Business jargon adds lethal touch to the politics

Could it possibly be the case that Gordon Brown is preparing for a post-political life in the boardroom? Something non-executive at a suitably august City investment bank perhaps? No, probably not. But he's certainly got a grasp of the lingo.

Front office this, back office that ... mergers, synergies, cost-efficiencies ... relocating jobs. Before long, on yesterday's evidence, the chancellor will be making quarterly earnings per stakeholder forecasts and bragging about the governmental balance sheet efficiencies accompanying his latest synthetic hedging strategy, arranged in Bangalore. And, with the confidence he displayed yesterday, Brown might even get away with it.

The chancellor was on a mission to gloss over the harsh fact that he has little option right now but to borrow more and squeeze a bit of extra revenue from the tax base to meet his existing spending targets. This eighth Brown budget, matching Lloyd George's record for longevity, was an important moment to start setting the agenda for the next election. Adopting the language of business added a lethal touch to what was otherwise pure politics.

For the uninitiated, "front office" is City-speak for an investment bank's sales staff - the brokers and traders who persuade the customers to part with their cash. It's the glamorous end of the business, where all the money is seen to be made.

The "back office" is as it sounds - the department at the back of the trading room where administrators toil, trying to make sure that the transactions hurriedly arranged by the front office actually happen. Albeit crucial to the financial health of the bank, this is the unglamorous end of the business. It's also the place where the first job cuts fall when times are lean.

Brown, of course, sees his front and back offices rather differently. "Front" equals fresh and responsive; civil servants who know they are working for the public and do so in the most efficient manner possible. These people are worthy of investment.

"Back" equals stale and lazy; civil service jobsworths who resist modernity. These people are dispensable and, across the Departments of Work and Pensions, Education and the super new tax ministry, some 40,000 such efficiencies have now been identified.

It is almost possible to visualise the PowerPoint presentation: "Shrink to grow: harnessing market dynamism in the Public good."

Account closed

Of course, if the chancellor does ever contemplate a post-political life in the City, he'll have to give the accountancy profession a wide berth.

Yesterday's confirmation that crafty tax-avoidance schemes dreamt up by the industry will have to carry a stamp of governmental approval clamps one of the fastest growing segments of the entire service industry.

Those who peddle such schemes will be livid, because at the very least the approval process will give the Treasury early notification of which loopholes need closing in the next Budget.

We should all be prepared for an avalanche of complaints over how Brown is stifling creativity, adding yet more bureaucracy, and encouraging the entire business class to emigrate to St Kitts & Nevis. Which, of course, will not happen.

The only outrageous thing here is that such anti-avoidance measures are only now being introduced.

The parallel measure yesterday to slap a 19% tax change on the distribution of small business profits falls into the same anti-avoidance basket.

It was clearly intended as a spur to entrepreneurs when Brown introduced the small business tax break two years ago. But the unforeseen consequence was that scores of thousands of self-employed workers realised they could avoid income tax simply by incorporating themselves as a business and paying themselves dividends.

Some £1bn will have flooded through this hole by the time it is finally plugged. The difference here is that those who will be hit - typically young-ish, middle class, creative types - are quite likely to be Labour voters.

It is a measure of the underlying fragility of the Treasury's real figures that Brown couldn't wait until after the election before acting.

Moore is less

Budget day always brings an avalanche of unsolicited comment from lobby groups, accountants, lawyers and countless others hoping to see their names in print. So we should oblige Isabella Moore, president of the British Chambers of Commerce.

At 2.20 yesterday afternoon she said: "We believe the Budget is too optimistic in anticipating a major rebalancing of the economy towards investment and exports," adding that "the chancellor's forecasts for manufacturing output are disappointingly low". "We continue to question the chancellor's confidence that he will meet his 'Golden Rule'."

And at 3.40 yesterday Ms Moore said: "The chancellor is to be congratulated on ensuring stability, low inflation, high employment and sustainable economic growth ... This is a good step in the right direction but there is still more to do."